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Union Budget 2025 Expectations for Education and Skills

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As the Union Budget 2025 approaches, experts from diverse sectors eagerly anticipate transformative policies laying strong emphasis on enhancing education and innovation that will shape the future of education, skill development, and the economy. Key recommendations include prioritizing research and intellectual property in higher education, incorporating these areas into Corporate CSR funding, and offering long-term financing options for universities to encourage private investment. Allowing a for-profit model in education and offering collateral-free loans could increase enrollment, especially in a nation with low enrollment numbers. Additionally, increased fiscal allocation for higher education innovation, skill-based learning, and global partnerships is vital to strengthen Indian universities’ global competitiveness.

The startup ecosystem also needs support, with a focus on streamlining regulations, offering tax incentives, and addressing skill gaps in emerging sectors such as AI, IoT, and green technology. Measures to support the middle class, like revising tax slabs and incentivizing investments in transformative sectors, could foster sustainable growth.

The NEP’s goal of achieving a GER of 50% by 2035 calls for greater industry collaboration, skill-based training, and technology investments. The PM Vidyalakshmi scheme could improve access to education, while introducing incentives for Distinguished Skill Universities would help bridge skill gaps and increase employment opportunities. A visionary budget prioritizing these initiatives would strengthen India’s education and economic positioning.

Here is a compilation of insights and expectations from prominent thought leaders.

Higher Education and Industry Collaboration

As we approach the Union Budget 2025-2026, there is hope for increased funding for education and skill development, aiming for 6% of GDP to align with NEP 2020 goals. Such investment is essential to foster public-private partnerships, enhance skilling programs, and create sustainable employment opportunities for both individual and national growth. To meet GER targets in higher education, leveraging technology and online learning is key, ensuring accessibility and improving learning outcomes. However, many institutions face challenges like outdated infrastructure and poor technological resources, which need addressing to prepare students for a tech-driven job market. A clear policy roadmap is necessary to equip students and faculty with the tools to succeed in a rapidly changing world says Praveen Singh, CEO, Aasoka (MBD Group)

In the upcoming Union Budget, priority can be given to research and intellectual property in the higher education sector. These two categories should be included as part of Corporate CSR fund deployment to accelerate India’s research journey. Education and research capital expenditure could be classified under priority lending, with a focus on 25-year long-term financing for universities as national assets and subsidized lending rates. These initiatives could accelerate private investment in the sector. Allowing education to operate under a for-profit model can enhance capital infusion into the sector and make it globally competitive. Additionally, collateral-free education loans for students could enable higher enrollment numbers in a young nation like ours, which currently struggles with sub-30% levels.”Vishal Anand, Founder & Pro Chancellor, Shoolini University

The need of the hour is greater fiscal allocation towards innovation-driven research, skill-based learning, and global partnerships to enhance the competitiveness of Indian universities on a global scale. While primary and secondary education have rightfully received significant focus in the past, it’s imperative now to strengthen higher education to meet the demands of a rapidly evolving global economy.  We hope the government will prioritize policies that foster industry-academia collaboration, promote technological adoption, and ensure equitable access to quality higher education for students across all strata.”Praveen K. Pula, President & Chancellor, Woxsen University– President & Chancellor, Woxsen University

“ The Startup India initiative has already recognized over 1.17 lakh startups, creating more than 15.53 lakh direct jobs by December 2023, and this momentum can be amplified by streamlining regulations, enhancing tax incentives, and improving access to finance. Addressing skill gaps in emerging sectors such as AI, IoT, and green technology through initiatives like the Pradhan Mantri Kaushal Vikas Yojana, which trained over 1.10 crore candidates between 2016 and 2020, is essential to equip the workforce for evolving demands. At the same time, inflation at around 5.5% annually necessitates revisiting tax policies to offer greater deductions on essentials or direct support for startup employees to alleviate middle-class pressures. A comprehensive strategy integrating policy reforms, financial incentives, and skill development will not only strengthen India’s entrepreneurial ecosystem but also address economic challenges faced by the middle class, fostering sustainable growth and inclusive prosperity.Prof. Swapnil Sahoo, Assistant Professor-Strategy and Entrepreneurship, Great Lakes Institute of Management, Gurgaon

“The upcoming Union Budget 2025 presents a significant opportunity for the government to advance its dual objectives of enhancing disposable income and stimulating economic consumption. Measures such as revising personal income tax slabs or increasing exemption limits could provide essential relief to middle-income households, which form the cornerstone of India’s economic framework. Simultaneously, introducing targeted tax incentives for investments in transformative sectors like green energy, skilling initiatives, and AI-driven startups would not only encourage individual engagement in these high-potential areas but also align with the nation’s broader strategic priorities for sustainable growth. While the perennial call for tax simplification persists, this budget must also address the imperative of equitable tax distribution. By implementing policies that enhance compliance through greater transparency and streamlined filing processes, policymakers can expand the tax base while fostering trust among taxpayers.”Dr. Suresh Ramanathan, Dean, Great Lakes Institute of Management, Chennai

Given the NEP’s targeting a Gross Enrolment Ratio (GER) of 50% by 2035 in higher education, including vocational education and the increased focus on Education 4.0, the education sector continues to aim for a 6% GDP allocation to education. We expect the government to increase collaboration with industry on internships, skill-based training, and investments in technology-driven solutions. The introduction of the PM Vidyalakshmi scheme to provide financial support to meritorious students would improve access to education and help achieve GER targets. Additionally, there is a need to establish a fast-track process for patent applications and grants for educational institutions. – Arti Dawar, Deputy CEO, Shiv Nadar School

“Introduction of incentives for existing universities and educational institutions to create Distinguished Skill Universities in very important. These institutions will address the critical skill gap by equipping the next generation with industry-relevant expertise, thereby driving employment opportunities and enhancing India’s competitiveness in the international arena. A visionary budget that prioritizes these initiatives will serve as a cornerstone for India’s emergence as an economic and educational superpower in the 21st century.”Abhay G Chebbi, Pro-Chancellor, Alliance University

Fr. Dr. K.S. Casimir Director of XLRI Delhi-NCR emphasizes the critical importance of strategic investments in human capital for sustainable and inclusive economic growth. He advocates for a comprehensive approach that includes robust support for skill development, enhanced funding for research and innovation, strong industry-academia partnerships, and equitable access to quality education. He believes that a budget prioritizing youth empowerment, innovation, and inclusive education will boost employability, drive economic progress, and create a prosperous and equitable future for India.

Dr. Ram Sharma, Vice Chancellor, UPES University suggests innovative funding mechanisms, such as education bonds and research-linked securities, to bridge resource gaps in higher education. He envisions robust private and public investments driving transformative research and innovation.

Vinay Maheshwari, Executive Director, Mohan Babu University calls for CSR contributions and tax-free research equipment to boost academic excellence. He urges extending benefits of the Anusandhan National Research Foundation to private institutions.

Praveen K. Pula, President & Chancellor, Woxsen University emphasizes the need for policies that foster industry-academia collaboration, promote technological adoption, and ensure equitable access to quality higher education.

Vishal Anand, Founder & Pro Chancellor, Shoolini University advocates prioritizing research and intellectual property, suggesting CSR fund deployment to accelerate research journeys and long-term financing for universities.

Skill Development and Employability

Manikanth Challa, Founder & CEO, Workruit emphasizes the role of AI-driven career guidance platforms and targeted skilling programs for women and gig workers. Tax incentives for AI investment and a centralized job-matching portal could bridge education-employment gaps.

Amit Takte, CTO, DroneAcharya Aerial Innovations highlights the growing demand for skilled professionals in drones and GIS technology. Specialized training centers and subsidized certification programs are critical for workforce readiness.

Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship advocates for women’s workforce participation, with targeted financial incentives, improved access to apprenticeships, and infrastructure like creches and transportation facilities for women. He also emphasizes the need for mobilization allowances for disadvantaged communities.

Veerasundar V., CFO, Simplilearn urges investments in AI and IoT skilling programs to prepare India’s workforce for future demands. Mid-career upskilling and female entrepreneurship require targeted training and financial support.

Accessibility and Inclusivity

Dr. Maithili Tambe, CEO, The Academy School (TAS), Pune emphasizes the urgent need for increased scholarships targeting underprivileged and marginalized communities. She advocates for sustainable education allowances covering tuition, transportation, materials, and digital resources to alleviate financial burdens on families. Merit-based scholarships in STEM and arts could further nurture talent.

Neera Nundy, Co-Founder, Dasra India highlights the potential of private philanthropy in driving sustainable cities and women’s leadership. Favorable policies and tax incentives could unlock domestic capital.

Technological Advancement in Education

The integration of digital tools in education is crucial. With India’s GDP projected to grow at 6-6.5% and the digital economy contributing nearly $250 billion, there is a significant opportunity to invest in building a future-ready workforce. The future of education lies in a hybrid model that blends online platforms with traditional classroom teaching. To make this vision a reality, the government must focus on improving digital infrastructure, especially in rural areas, where internet access is limited. Public-private partnerships can play a key role in developing innovative educational technologies and skill-building programs. By equipping youth with digital literacy and tech-driven skills, we can prepare them for the global workforce, says Udit Yadav, Founder & Director of Satan Digital 

Dr. Tom Joseph, Co-Founder, USDC Global calls for enhanced digital infrastructure in rural areas, faster internet access, and AI-driven tools to bridge skill gaps. Simplified regulations for EdTech startups and support for partnerships in AI will foster a trusted digital education ecosystem. Lowering GST on educational products from 18% to 5% could benefit learners nationwide.

Sanamdeep Chadha, Director, Genesis Global School highlights the importance of adopting AI, robotics, and coding in education. He stresses public-private partnerships for teacher training and a significant increase in public spending to align with NEP 2020.

Udit Yadav, Founder, Satan Digital believes the hybrid model of education, blending online and traditional teaching, is key to building a future-ready workforce. Enhancing digital infrastructure and public-private collaborations are vital.

International and Global Competitiveness

Amit Goyal, Regional Managing Director, PMI South Asia underscores the importance of project management skills to accelerate India’s growth. Training programs for large-scale project management in renewable energy and logistics are key to India’s global aspirations.

Arnav Kumar, Co-Founder, Leap hopes for policies making international education more accessible, positioning India as a global education hub.

Tax Incentives and Financial Relief

Ashish Munjal, Co-Founder, Sunstone calls for increased funding for educational infrastructure, teacher training, and curriculum updates to align with industry needs. Fiscal incentives for skill development programs are essential.

Ajitesh Basani, Executive Director, Acharya Bangalore B-School suggests a 20-25% hike in funds for higher education and research, along with a ₹10,000 crore allocation for emerging technologies like AI and green energy.

Dr. Suresh Ramanathan, Dean, Great Lakes Institute of Management advocates for revising income tax slabs, increasing exemption limits, and introducing targeted tax incentives for transformative sectors like green energy and AI.

Focus on Emerging Sectors

Abhay G. Chebbi, Pro-Chancellor, Alliance University proposes incentives for universities to establish Distinguished Skill Universities addressing critical skill gaps and enhancing global competitiveness.

Dr. Vikram Kumar, Founder, SRV Media praises education-focused initiatives like e-vouchers for loans and skill programs for youth. He suggests inclusive strategies that address digital marketing sector needs.

Anshul Khurana, Co-Founder, Entitled Solutions emphasizes regulatory stability for financial inclusion, formal recognition of gig workers, and healthcare access for urban low-income households.

Holistic Development and Social Impact

Rajit Mehta, CEO, Antara Senior Care advocates investments in elder care services, community programs, and a skilled caregiving workforce to support India’s aging population.

Sowjanya Kanuri, Director, ACT For Education highlights the need to bridge the divide between top and bottom socio-economic quartiles through technology integration and equitable access to learning.

Vision for a Future-Ready Workforce

Indu Kansal, Co-Founder, Crack Academy expects increased focus on digital education, rural connectivity, and tax benefits for education expenses to build an equitable education system.

Dr. Prof Anand Achari, Principal, VES College of Architecture stresses the importance of implementing the National Research Foundation (NRF) and promoting patent culture within institutions.

Building the Foundation for Growth

As articulated by these experts, the Union Budget 2025 has the potential to revolutionize education, skill development, and economic growth. By prioritizing technology, inclusivity, and innovation, the government can pave the way for a prosperous and equitable future.

 

(Please note, we are not accepting anymore inputs under this theme)
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